Bournville leases on residential deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Bournville will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not qualify. There are prescribed deadlines and steps to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society | |
| Virgin |
Engaging our service gives you increased control over the value of your Bournville leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months John, came critically near to the eighty-year threshold with the lease on his ground floor apartment in Bournville. Having purchased his home two decades ago, the unexpired term was of minimal significance. Luckily, he became aware that he would imminently be paying an inflated amount for Extending the lease. John extended the lease at the eleventh hour last April. John and the freeholder ultimately agreed on an amount of £5,000 . If the lease had slid lower than eighty years, the premium would have escalated by at least £875.
Mr and Mrs. G Roberts acquired a studio apartment in Bournville in April 1996. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparative flats in Bournville with an extended lease were worth £270,000. The average amount of ground rent was £55 collected monthly. The lease finished in 2101. Taking into account 75 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Last month we were called by Mrs Rachel Mercier , who purchased a garden flat in Bournville in November 1995. The question was if we could approximate the premium would likely be to prolong the lease by an additional years. Similar properties in Bournville with an extended lease were worth £173,800. The average ground rent payable was £60 billed monthly. The lease expired on 3 February 2081. Having 55 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.